The Indian financial regulator has launched an investigation into allegations that employees at Bank of America shared confidential client data, raising serious compliance and cybersecurity concerns. The probe centers on a breach involving personal information from thousands of customers across India.
- Indian financial regulator initiated probe into Bank of America employees sharing client data
- Sensitive information included identity details, account numbers, and transaction histories
- Potential fines under Indian law could reach up to 250 million rupees ($3 million) per violation
- Bank of America (BAC/BOFA) shares declined 1.4% following the announcement
- Internal review underway; no official confirmation from the bank yet
- Incident underscores risks in cross-border data handling within emerging markets
Bank of America is facing regulatory scrutiny after Indian authorities alleged that multiple employees improperly accessed and disseminated private customer data. The incident, reportedly uncovered during a routine audit by the country's financial oversight body, involved sensitive information including identity details, account numbers, and transaction histories. Authorities have identified several employee accounts linked to unauthorized data transfers, though no specific number of individuals affected has been disclosed. The investigation highlights growing concerns over data governance in multinational banking operations, particularly in high-growth markets like India. While Bank of America remains a dominant player in global financial services with assets exceeding $3.7 trillion as of 2025, this case threatens its reputation for compliance and operational integrity. Regulatory penalties under Indian law can include fines up to 250 million rupees ($3 million) per violation, depending on the scale and severity. Although Bank of America has not issued a public statement confirming or denying the allegations, internal communications indicate the firm is conducting an internal review. Shares in Bank of America (BAC) dipped nearly 1.4% in early trading following the report, reflecting investor anxiety over potential legal exposure and reputational damage. The stock, which trades under the ticker BOFA in some markets, has seen increased volatility in recent weeks amid broader regulatory pressures on U.S. banks. The case may prompt tighter monitoring of cross-border data handling practices among global financial institutions operating in emerging economies. With India expected to become one of the world’s top five financial hubs by 2030, such breaches could trigger more stringent regulatory frameworks and affect future expansion plans.